His Grace Bishop Nikanor was ordained into the Episcopal rank in 1984, receiving the title of (Vicar) Bishop of Hvostno (Vicar to the Serbian Patriarch).

Following the repose of the Serbian Patriarch German, he was elected Bishop of Upper Karlovac. He was forced to flee his diocese with his flock in 1995 during the ethnic cleansing of Slavonia, Dalmatia and Lika committed by Croatian and NATO forces. After a brief stay in the Zica diocese, he was elected Bishop of Australia and New Zealand and enthroned in January 2000.

In 2004, His Grace was elected Bishop of Banat, following the election of then Bishop of Banat Hrizostom to the vacant Zica diocese.